Dáil Éireann Debate, Wednesday - 19 December 2018
48. Deputy Bríd Smith asked the Minister for Employment Affairs and Social Protection if the cases of persons who have failed to qualify for a contributory pension under new criteria introduced in 2012 that raised the minimum contributions needed to 520 will be examined; if the impact on those applicants who subsequently failed to qualify for a non-contributory pension will be examined; and if she will make a statement on the matter. [53452/18]
Amharc ar fhreagraIn April 2012, the number of paid contributions required to qualify for a state pension (contributory) increased from 260 to 520. This change was signalled well in advance of its introduction. In 1993, "Developing the National Pension System - Final Report of the National Pensions Board” was published, and recommended that the number of paid contributions required to qualify for a contributory pension should be increased to 520 contributions, in recognition of the expansion of PRSI coverage over the decades. The enabling legislation was contained in Section 12 of the Social Welfare Act 1997, which provided for the implementation of the change in two stages, with the paid contribution requirement being standardised initially at 260 from 2002, and rising to 520 from April 2012, 15 years after its introduction in law.
Given that the actuarial value of the State Pension is estimated at over €300,000, it is reasonable to require people who claim a contributory pension to have made at least 10 years of paid contributions over 50 years of a working age life.
Where a person does not satisfy this minimum contributions criterion, it is open to them to apply for a state pension (non-contributory). If a person does not qualify for a state pension (non-contributory), their share of household means amounts to more than €247.50 per week. Where they are part of a couple, this indicates that household means are in excess of €490 weekly. In this regard, it is important to note that this assessment does not include wages of up to €200, a spouse's State pension, or any secondary social welfare benefits either may be receiving, as these are all disregarded for the purposes of calculating the household means. Their income, therefore, would be above average for a pensioner couple.
I hope this clarifies the matter for the Deputy.
